Why can't bitcoin be used to fund wars?
Because it cant be confiscated like in 1933, plus it cant be printed out of thin air, so even if the government embraces bitcoin as a currency, it can only spend as much as it collects in taxes.
Thus a limited supply blocks tyrrany.
Gold isnt limited, and with new mining technology or some futuristic synthetization method it can be a fiat currency too.
As long as there are companies that accept bitcoin for guns/tanks/planes/rockets/ whatever, bitcoin can be used for war.
Thats another thing. But only governments buy military hardware by bundles. If they dont have enough money for it, they cant buy.
Average people dont have rockets in their houses.
I pretty much agree with and its such a important point, so easily missed but its true that limited currency will tend to limit war. We're not talking absolutes here, obviously people can fight but without a leash a government can become a dangerous thing to its own people, to other people to everyone who isn't within that power its off the leash and dangerous.
We recognise that democracy limits power of those at the top, they are guided by a need to satisfy their population. On the other hand people recognise also that democracy is not without faults, mistakes still occur but in the main its a force for good.
So what about the money side of things and I agree that a non fiat limit here like bitcoin has is going to reduce war. The reason is that the population immediately feels pain from government overspending on sources of war, weapons and massive military build-up. Either democracy breaks down and a military dictatorship occurs or more likely the average person stops this excessive military spending and so war is less likely in most cases and certainly pointless aggression is restricted as people know its costs.
When debt and fiat currency allows for massive expansion without pain of this spending being felt, its making war more possible and almost always this war will be pointless, unneeded aggression that benefits neither side. Most obviously world war 1 did not need to happen and nobody gained from millions of deaths, it is contrary to capitalism I will argue to engage in war and death, productivity is wasted on every side
I do disagree with you on gold being fiat. Work must be done to enable its mining, this requires alot of effort and attention diverted from elsewhere. There is a feedback effect to it as a source of capital. yes technology has enabled greater mining but still its growth is restricted far more then we've seen with the Federal reserve fiat system which is basically a currency of promises and political bargaining between nations mostly to the detriment of powerless people